subject: What Is A Maryland Bond Use For In Business [print this page] The phrase Maryland bond can mean different things to people, but in general, it will reflect mostly on the insurance industry. There are several types of bonds available to businesses that protect them from employees, and protect their clients from liability as well. The idea behind a performance bond is to create a type of guarantee between a client and vendor that the job at hand will be finished, but in case of some unforeseen problems, the bond will cover the expenses of having another company finish the job. Usually large corporations and government agencies will require this type of insurance to be included on bids for construction jobs.
A bond can be used for transportation brokerage companies as well, as they buy and sell full and partial truckload freight, and as a promissory note to the trucking company. They are required by state and federal guidelines to carry a bond of at least four thousand dollars for their client's protection. Generally, if a freight brokerage company goes out of business, this will be eaten up quickly. A good rule to follow is go with a firm that carries at least twenty to thirty thousand dollars in bond coverage.
You have probably seen advertisements in the past for house cleaning, and home improvement services stating that they are insured and bonded. This essentially means that they have made themselves responsible for anything that happens on your property will be covered by their liability coverage, and performance bond. A Maryland bond issuer would in this case would issue the paper bond after payment is made, and a client is well within their rights to ask for a copy of the certificate to verify its validity. Always make sure that what you receive is actually issued by an insurance carrier, as some unscrupulous business people, will have their own made up with desktop publishing software, and then just print them out like they are making money to spend.
When it comes to anyone entering your home to perform professional services, you can require they be bonded. Some small companies cannot afford this, and will pass on your business if required. You can however take out your own bond on them if you wish to protect the assets of your home. If just one injury happens during a home renovation or house cleaning that person could sue you in civil court for medical bills, lost wages, and future lost income.
A Maryland bond will cover most mishaps in business, but there are still scenarios where it will not cover everything. Your best protection when it comes to bonds on service and construction type companies is to become educated about the wording, and minimal coverage's they contain provisions for, when pertaining to your situation.
What Is A Maryland Bond Use For In Business
By: Renee Walker
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